Campaign encourages residents to shop in Avondale

Due to an ailing economy and a reduction in sales-tax revenue, Avondale is struggling to maintain its current level of services to residents and businesses.

To help itself and its residents, the city is promoting a shop-locally effort, "Keep Green in Avondale."

"With the downturn in the overall economy, cities rely now more than ever on the sales tax from every dollar spent in the city," said Claudia Whitehead, Avondale's economic development director. "We encourage the community to shop in Avondale whenever possible, (because) city sales-tax money goes back to services and programs for our residents. Your sales-tax dollars fund police and fire services, and help to build streets, parks and libraries."

Sales tax provides nearly half of the city's general-fund revenue used to pay for services.

City Manager Charlie McClendon notes other advantages to local shopping.

"I want people to understand that it's more than just we want the sales tax, because when you shop at a local business, then the people who work at that business and who own that business are reinvesting their earnings and their profits locally rather than somewhere else," McClendon said. "So it's a much greater benefit to the community than just sales-tax dollars."

Avondale, as are other cities, is facing several economic challenges.

Foreclosures have skyrocketed, leaving too many empty homes that drive down property values and attract thieves and vandals.

Of the 23,073 single-family homes in Avondale, 1,696, or 7.4 percent, are in foreclosure and an additional 891, or 4 percent, have delinquent mortgages and are in pre-foreclosure. Overall, Avondale could see a 12 percent-average foreclosure rate before the economy mends.

Also, in September, the city tried to raise extra revenue to pay for public safety and water, sewer and street projects by asking voters to increase by 1 percentage point the tax rate on retail purchases of more than $5,000, from 1.5 percent to 2.5 percent. Avondale car dealerships, who were most affected by the increase, opposed the proposal, which the voters rejected.

McClendon said the city wanted the extra revenue from the tax increase mostly to hire more public-safety employees. Because voters shot down the increase, the city will continue to operate with the same number of employees and offer the same services as before.

Also, vehicle sales have slowed because of tightening credit and consumers who are afraid to spend money or who have no money. Vehicle sales are a significant piece of the city's sales-tax revenue.

Year-over-year sales-tax revenue from car dealerships in Avondale is down 20 percent. But Whitehead said Avondale dealerships aren't hurting as bad as other car companies elsewhere, mostly because of their prime location at the confluence of Loop 101 and Interstate 10.

Because of the growing economic turmoil, the city encourages its residents to support the community by keeping as much of their cash in the city as possible.

Whitehead said shopping locally can help residents, too.

"If people are shopping locally and dining locally, it really saves on gas and driving trips and that type of thing, too, so it (campaign) is really green on the sustainable side as well," she said. "Even though gas prices have come down substantially over the past couple of months, people are really more conscientious about driving, so that helps to encourage them to shop locally and drive less distances."

The "Keep Green in Avondale" campaign includes ways for residents to receive discounts, to enter green gift-card giveaways and to take part in promotional events throughout the campaign until Jan. 31.

Avondale businesses are invited to promote their specials and discounts on the city Web site at www.avondale.org/shopavondale.

Participating businesses will also receive promotional materials that highlight the "Keep Green in Avondale" theme. There is no fee for businesses participation.

Despite an economic downturn, there were plenty of vehicles being repaired and serviced on Nov. 19 at Avondale Dodge by employees such as Andrew Allan (left) and James Howerton.